Stellar (payment network)
{{Infobox software
| title = Stellar
| name = Stellar
| logo = Stellar Symbol.png
| logo size =
| logo alt =
| logo caption =
| author = {{ubl|Jed McCaleb|Joyce Kim}}
| developer = Stellar Development Foundation
| released = {{start date and age|2014|7|31}}
| programming language = C++, Rust, Go, Java, JavaScript, Python, Ruby
| operating system = Cross-platform
| genre = Blockchain
| license = Apache License 2.0
| website = {{url|https://stellar.org}}
}}
{{Infobox cryptocurrency
| currency_name = Lumen
| image_1 =
| alt1 =
| precision = 10−7
| subunit_ratio_1 = {{frac|10000000}}
| subunit_name_1 = stroop
| plural = lumens
| symbol = *
| ticker_symbol = XLM
| white_paper = The Stellar Consensus Protocol: A Federated Model for Internet-level Consensus{{cite web|url=https://www.stellar.org/papers/stellar-consensus-protocol.pdf|title=The Stellar Consensus Protocol: A Federated Model for Internet-level Consensus|date=25 February 2016|first1=David|last1=Mazieres|access-date=18 May 2021}}
| initial_release_date = {{start date and age|2014|7|31}}
| status = Active
| latest_release_date =
| developer =
| source_model =
| license =
| website = {{url|https://stellar.org}}
| circulating_supply =
| supply_limit = 50 billion
| exchange_rate =
| market_cap =
| footnotes =
}}
Stellar, or Stellar Lumens (XLM) is a cryptocurrency protocol which allows transactions between any pair of currencies.
The Stellar protocol is supported by the nonprofit Stellar Development Foundation (though this organization does not have 501(c)(3) tax-exempt status){{cite web |url=https://www.stellar.org/community/faq |title=Stellar FAQ |access-date=15 January 2021 |archive-date=14 January 2021 |archive-url=https://web.archive.org/web/20210114230922/https://stellar.org/community/faq |url-status=dead }}{{cite web |url=http://www.businessinsider.com/keith-rabois-stellar-foundation-2014-7 |title= PayPal's Cofounder Is Supporting A New Non-Profit That Will Tackle The Vision PayPal 'Never Accomplished' |author= Jillian D’onfro |date=31 July 2014 |publisher= Business Insider |access-date=23 April 2015}} which was founded in 2014. The for profit arm, Lightyear.io, was founded in 2017.
History
In 2014, Jed McCaleb, founder of Mt. Gox and co-founder of Ripple, launched the network system Stellar with former lawyer Joyce Kim. Before the official launch, McCaleb formed a website called "Secret Bitcoin Project" seeking alpha testers.{{cite news|url=https://blogs.wsj.com/moneybeat/2014/07/31/mt-gox-ripple-founder-unveils-stellar-a-new-digital-currency-project/|title=Mt. Gox, Ripple Founder Unveils Stellar, a New Digital Currency Project|newspaper=Wall Street Journal |date=31 July 2014 }} The nonprofit Stellar Development Foundation was created in collaboration with Stripe CEO Patrick Collison and the project officially launched that July. Stellar received $3 million in seed funding from Stripe.{{Cite web|url=https://fortune.com/2014/07/31/stripe-launches-bitcoin-challenger-gives-it-away-for-free/|title=New Bitcoin challenger launches|website=Fortune}}{{cite web |url=http://www.irishtimes.com/business/technology/stripe-takes-on-bitcoin-with-rival-digital-currency-stellar-1.1887360 |title= Stripe takes on bitcoin with rival digital currency Stellar |author= Michael del Castillo |date=5 August 2014 |publisher=The Irish Times |access-date=20 November 2015}} Stellar was released as a decentralized payment network and protocol with a native currency, stellar. At its launch, the network had 100 billion stellars. 25 percent of those would be given to other non-profits working toward financial inclusion.{{cite web|url=https://venturebeat.com/2014/07/31/payment-processor-stripe-launches-a-new-currency-the-stellar/|title=Payment processor Stripe helps launch a new currency, the Stellar|date=31 July 2014 }}{{cite web|url=http://www.businessinsider.com/keith-rabois-stellar-foundation-2014-7|title=PayPal's Cofounder Is Supporting A New Non-Profit That Will Tackle The Vision PayPal 'Never Accomplished'|website=Business Insider }} Stripe received 2 percent or 2 billion of the initial stellar in return for its seed investment.{{cite web|url=https://techcrunch.com/2014/07/31/stripe-backs-non-profit-decentralized-payment-network-stellar-from-mt-goxs-original-creator/|title=Stripe Backs Non-Profit Decentralized Payment Network Stellar, From Mt. Gox's Original Creator|date=31 July 2014 }} The cryptocurrency, originally known as stellar, was later called Lumens or XLM.{{cite web|url=http://www.nasdaq.com/article/2-game-changing-new-cryptocurrencies-with-serious-backing-cm907959|title=2 Game-Changing New Cryptocurrencies With Serious Backing}} In August 2014, Mercado Bitcoin, the first Brazilian bitcoin exchange, announced it would be using the Stellar network.{{cite magazine|url=https://www.wired.com/2014/08/new-digital-currency-aims-to-unite-every-money-system-on-earth/|title=New Digital Currency Aims to Unite Every Money System on Earth|magazine=Wired |last1=Metz |first1=Cade }} By January 2015, Stellar had approximately 3 million registered user accounts on its platform and its market cap was almost $15 million.{{Cite web|url=https://www.techinasia.com/stellar-asia-growth|title=Tech in Asia - Connecting Asia's startup ecosystem|website=www.techinasia.com}}
The Stellar Development Foundation released an upgraded protocol with a new consensus algorithm in April 2015 which went live in November 2015.{{cite magazine|url=https://www.wired.com/2015/04/stanford-prof-builds-algorithm-internet-money/|title=An Algorithm to Make Online Currency as Trustworthy as Cash|date=8 April 2015|magazine=WIRED|publisher=Condé Nast|author=Cade Metz|access-date=23 April 2015}} The new algorithm used SCP, a cryptocurrency protocol created by Stanford professor David Mazières.{{cite web| url=https://www.technologyreview.com/s/536641/a-new-competitor-for-bitcoin-aims-to-be-faster-and-safer/| title=A New Competitor for Bitcoin Aims to Be Faster and Safer| author=Tom Simonite| date=April 15, 2015}}
Lightyear.io, a for-profit entity of Stellar, was launched in May 2017 as the commercial arm of the company.{{cite web| url=http://fortune.com/2017/05/11/lightyear-blockchain/| title=Stripe-Backed Stellar Places a New Bet on Blockchain in the Developing World| author=Jeff John Roberts| date=May 11, 2017| publisher=Fortune| access-date=August 26, 2018}} In September 2017, Stellar announced a benefits program, part of its Stellar Partnership Grant Program, which would award partners up to $2 million worth of Lumens for project development. In September 2018, Lightyear Corporation acquired Chain, Inc and the combined company was named Interstellar.{{Cite news|url=https://www.bloomberg.com/news/articles/2018-09-10/blockchain-startup-chain-merges-with-stellar-to-accelerate-use|title=Blockchain Startup Chain Merges With Stellar to Accelerate Use|website=Bloomberg.com|date=10 September 2018 }}
In 2021, Franklin Templeton launched the first tokenised US mutual fund using Stellar.{{Cite news |last=Noonan |first=Laura |date=2021-12-10 |title=Blockchain-powered breakthrough on mutual fund |work=Financial Times |url=https://www.ft.com/content/fd57521c-a2e9-415b-9c4f-4f74b4587f9e |access-date=2023-08-15}}
Usage
In 2015, it was announced that Stellar was releasing an integration into Vumi, the open-sourced messaging platform of the Praekelt Foundation in South Africa.{{cite web |url=https://gigaom.com/2015/02/05/stellar-south-african-nonprofit-to-bring-digital-savings-to-young-girls/ |title=Stellar, South African nonprofit to bring digital savings to young girls |author=Biz Carson |date=5 February 2015 |publisher=GigaOm |access-date=23 April 2015 |archive-date=28 February 2015 |archive-url=https://web.archive.org/web/20150228024820/https://gigaom.com/2015/02/05/stellar-south-african-nonprofit-to-bring-digital-savings-to-young-girls/ |url-status=dead }} Vumi uses cellphone talk time as currency using the Stellar protocol.{{cite web|url=http://www.technologyreview.com/news/535271/bitcoin-inspired-digital-currency-to-power-mobile-savings-app/|title=Bitcoin-Inspired Digital Currency to Power Mobile Savings App|author=Tom Simonite|date=20 February 2015|publisher=MIT Technology Review|access-date=23 April 2015|archive-date=20 May 2015|archive-url=https://web.archive.org/web/20150520182125/http://www.technologyreview.com/news/535271/bitcoin-inspired-digital-currency-to-power-mobile-savings-app/|url-status=dead}} Stellar partnered with cloud-based banking software company Oradian in April 2015 to integrate Stellar into Oradian's banking platform to add microfinance institutions (MFIs) in Nigeria.{{cite web|url=http://www.pymnts.com/exclusive-series/2015/stellar-and-solving-the-unexpected-tragedy-of-the-financial-system/#.VTmJ7pR4pBD|title=Stellar and Solving the Unexpected Tragedy of the Financial System|author= Karen Webster|date= 2 March 2015|publisher=PYMENTS.com|access-date=23 April 2015}}{{cite web|url=https://blogs.wsj.com/moneybeat/2015/02/28/bitbeat-stellar-takes-a-step-into-the-microfinance-world/|title=Stellar Takes a Step Into the Microfinance World|author= Paul Vigna|date=28 February 2015|publisher=Wall Street Journal |access-date=23 April 2015}}
Deloitte announced its integration with Stellar in 2016 to build a cross-border payments application, Deloitte Digital Bank.{{cite web| url=https://bankinnovation.net/2016/05/deloitte-taps-blockchain-startups-to-build-new-core-banking-system/| title=Deloitte Taps Blockchain Startups to Build New Core Banking System| author=Diana Asatryan| date=May 3, 2016| publisher=Bank Innovation| access-date=August 26, 2018}} In December 2016, it was announced that Stellar's payment network had expanded to include Coins.ph, a mobile payments startup in the Philippines, ICICI Bank in India, African mobile payments firm Flutterwave, and French remittances company Tempo Money Transfer.{{cite web|url=http://fortune.com/2016/12/06/fintech-stellar-blockchain-stripe-remittances/|title=Stripe-Backed Stellar Kicks Off Worldwide Money Transfers|last=FORTUNE|website=Fortune|access-date=2017-01-03}}
In October 2017, Stellar partnered with IBM and KlickEx to facilitate cross-border transactions in the South Pacific region. The cross-border payment system developed by IBM includes partnerships with banks in the area.{{cite web|url=https://www.cnbc.com/2018/01/24/stellar-jumps-20-percent-after-stripe-says-it-may-add-support-for-the-digital-coin.html|title=Stellar jumps 20% after Stripe says it may add support for the digital coin|website=CNBC |date=24 January 2018 }}{{Cite web|url=https://fortune.com/crypto/2017/10/16/ibm-blockchain-stellar/|title=IBM and Stellar Launch Blockchain Banking Across Multiple Countries|website=Fortune}} The Lumens digital currency was ranked 13th in market capitalization at the time of the IBM partnership. [https://www.cnbc.com/2017/10/16/ibm-has-a-new-blockchain-for-banks-to-speed-up-cross-border-payments.html IBM has a new blockchain for banks to speed up cross-border payments] Ryan Browne, CNBC, 18 October 2017
In December 2017, TechCrunch announced Stellar's partnership with SureRemit, a Nigerian-based remittances platform.{{Cite web|url=https://techcrunch.com/|title=Africa's SureRemit joins the tokenized race to win the global remittance market|last=Jake|first=Bright|website=TechCrunch|archive-url=https://web.archive.org/web/20110224043618/http://techcrunch.com/|archive-date=February 24, 2011|access-date=August 28, 2018|url-status=bot: unknown}}
On January 6, 2021, the Ministry of Digital Transformation of Ukraine announced cooperation and partnership with Stellar in development of Ukraine digital infrastructure.{{cite web |title=Мінцифра співпрацюватиме зі Stellar Development Foundation над розвитком ринку віртуальних активів |url=https://thedigital.gov.ua/news/mintsifra-spivpratsyuvatime-zi-stellar-development-foundation-nad-rozvitkom-rinku-virtualnikh-aktiviv |access-date=7 January 2021}}{{primary inline|date=February 2025}}
Ecosystem
Stellar has an active community ecosystem and supports projects that utilize the Stellar Network with the Stellar Community Fund.{{Cite web|url=https://communityfund.stellar.org/|title=Stellar Community Fund|website=communityfund.stellar.org}}
Overview
Stellar is an open-source protocol for exchanging money or tokens using the Stellar Consensus Protocol. The platform's source code is hosted on GitHub.
Servers run a software implementation of the protocol, and use the Internet to connect to and communicate with other Stellar servers. Each server stores a ledger of all the accounts in the network. 3 nodes are operated by the Stellar Development Foundation, in conjunction with 22 other organizations, providing for a total of 77 validator nodes.{{Cite web|title=Stellarbeat.io - Stellar network visibility|url=https://stellarbeat.io/|website=stellarbeat.io|access-date=2024-09-25}} Transactions among accounts occur not through mining but rather through a consensus process among accounts in a quorum slice.{{cite web |url=https://www.technologyreview.com/2015/04/15/110663/a-new-competitor-for-bitcoin-aims-to-be-faster-and-safer/ |title=A New Competitor for Bitcoin Aims to Be Faster and Safer |author=Tom Simonite|date=15 April 2015 |publisher=MIT Technology Review |access-date=2021-01-01}}
See also
References
{{Reflist}}
External links
- [http://www.stellar.org Official Website]
{{Cryptocurrencies}}
{{DEFAULTSORT:Stellar (Payment and Exchange Network)}}